PHARMAXIS BEGINS BRONCHITOL CYSTIC FIBROSIS STUDY

December 16, 2005

Pharmaxis has announced that a Phase II clinical trial in patients with cystic
fibrosis has commenced its dosing phase. The study, which aims to determine
the benefits of Bronchitol in children also receiving the market leading treatment,
rhDNase, is being conducted at two sites in the UK.

Patients enrolled in the study will receive three months treatment with each
of three different therapies - Bronchitol alone, both Bronchitol and rhDNase
together and rhDNase alone. The trial will measure changes in lung function,
airway inflammation, infections, and quality of life. Full patient recruitment
is expected to take about eight months.